The Benefits of Using a Fuel Card

Businesses with small to large fleets have to find reliable, affordable ways to manage those fleets and the resultant fuel costs. One of the best solutions for such companies is a fuel card, such as those offered through FleetCor. Having the right fuel card can help companies to avoid a wide range of fuel taxes they would otherwise have to pay and can provide a great many other benefits as well. For this reason, a valid, reliable, high quality fuel card is an affordable solution for modern companies and is truly one of the only ways to efficiently thrive in the industry.

A Branded Relationship

Many fuel cards are connected to a particular fuel company. FleetCor’s cards, for example, are often connected with Shell, one of the leading providers of fuel in the United States and beyond. In fact, in the United States, FleetCor has relationships with many major providers, including the FuelMan Network and The FuelCard Company. This means that owners of these cards can easily fuel up at any Shell stations while paying reduced taxes and fees for using that particular brand of station.

However, this does not mean that holders of such a card have to be limited to only one particular company or station. They do have the option, with some cards, to also use other stations while still avoiding many fees and additional costs.

Limit Spending

Entrusting drivers with fuel cards can be a harrowing experience, which is why FleetCor allows fleet managers to set highly specific limits on the use of the fuel cards. Limits can typically be placed on all of the following:

1. The amount that can be spent
2. How often purchases can be made
3. What can be purchased
4. Daily/weekly gallon limits, if desired
5. Maximum transactions per card
6. Fuel Only" cards
7. Time specific cards (i.e. Cards can be set to only function during working hours)

Better Employee Relations

When drivers are forced to pay for fuel costs out of pocket and then be reimbursed for them later, this can prove very inconvenient for the drivers. Many grow frustrated at having to spend their own money and track that money, and misreporting, both purposeful and accidental, is common among drivers who do not have fuel cards.

When drivers are given fuel cards, however, they do not have to spend money out of pocket, which can improve morale and their relationship with and loyalty to their fleet companies. This also eliminates problems related to inaccurate reporting and reduces unfair and incorrect spending on the part of the fleet company, which can save the company large amounts of money over time.

Improved Tracking and Reduced IFTA Taxes

Fuel cards provide a wealth of information about every transaction that can be useful for managing statistics and invoices. Some of the information provided for each purchase includes:

1. Purchase amount
2. Merchant name
3. Date of transaction
4. Time of transaction
5. Odometer reading at time of transaction
6. Driver ID

Having such easy access to this vital information reduces accounting costs and administrative costs, making it easier and less costly to file IFTA taxes. In fact, because of all the information provided, many companies have been able to handle their own tax filings in-house without having to hire an outside professional.

It also must be mentioned, as an additional money-saving benefit that Europe’s VAT (Value Added Tax) will always be refunded via a rebate when a fleet card is purchased and used.

A Consolidated Invoice

When drivers are spending out of pocket, tracking down their receipts and reimbursing them can be a costly, difficult, and incredibly time consuming process leading to confusion for both drivers and fleet managers.

With a fuel card, however, the company receives one consolidated invoice per period, which is much easier than reimbursing hundreds of (or more) drivers, potentially inaccurately.

These cards save time and money in every possible way and really are a must-have item for serious fleet services operating in today’s world.

This article is written by Tom Nutt, a public relations consultant of PR Point. PR Point is a leading global public relations and communications firm dealing with major oil companies and providing counsel and program development.